It is no secret that Netflix has been working on a less expensive subscription plan with ads, but until now it has only been a rumour, especially after Netflix CEO Reed Hastings said the business has no intention of jeopardising the platform with ads.
The company is creating a more affordable subscription option that includes ads, according to Ted Srandos, co-CEO of Netflix. He claims that by not airing commercials, Netflix is losing out.
Our target market includes a sizeable chunk of people who say Netflix is too expensive for them but don’t mind commercials, so we’ve left them off the table. The new ad-supported tier will cater to those who say, “Hey, I want a lower price and I’ll watch advertising.”
He also mentioned that Netflix is currently talking to potential ad-sales partners for the new tier.
Netflix does not have any intentions to install advertisements everywhere, so you may continue to enjoy the service as is without them. This provides premium members with comfort. Only users of the new subscription model’s less priced tier will view adverts.
Though Netflix hasn’t specified a launch date, we anticipate seeing the new tier by the end of the year.